Ineos workers ‘euphoric’ as Grangemouth petrochemical plant is saved

JUBILANT workers cheered yesterday as the Grangemouth petrochemical plant was saved from closure.

Grangemouth workers rejoice as it was announced that the plant would stay open [PA]

In a last-minute deal, owner Ineos reversed its decision to axe the massive complex with the loss of 800 jobs. The Swiss-based firm said it would reopen the plant and the neighbouring oil refinery “with immediate effect” after Unite agreed to see pay and conditions cut.

Ineos’ billionaire founder and chairman Jim Ratcliffe said it was “a victory for common sense”. Up to 2,000 contractors who were laid off after the complex was shut down will now be re-hired.

Huge cheers from the workforce, who have now signed up to a three-year salary freeze and pension changes to secure Grangemouth’s long-term future, greeted the move.

Staff who wept on Wednesday when told the plant was to shut because union members had rejected a £300million survival plan were “euphoric” at the reprieve.

Ineos will now press ahead with a new terminal to handle shale gas brought in from the US as North Sea supplies dwindle.

The move brings to an end a bitter dispute with the Unite union which began over the alleged mistreatment of one of its officials but escalated to threaten the entire site.

Yesterday it emerged Unite had agreed not to stage strikes at the plant for three years and to remove full-time convenors.

Grangemouth Petrochemicals chairman Calum MacLean said the firm was making a significant investment but “very limited redundancies” would still have to be made by spring.

Asked if he had held a gun to Scotland’s head, he replied: “I don’t think that’s the case.” He pointed out that Ineos had pumped £1billion into the business and would invest another £300million to secure its future for the next 15 to 20 years.

Mr MacLean also said it would have “saved a lot of traumatic effects” if union officials had begun the talks a week ago with the same attitude they had shown over the past two days.

“We have not asked for any kind of public apology,” he added.

“The most important thing has been about telling our people that there is a future for this site and that it is long-term sustainable.”

Earlier, staff packed into Grangemouth’s canteen to hear Mr MacLean tell them the plant was safe.

Rachel Morell, who has worked at the petrochemical plant for 12 years, said: “Everyone was very happy, there were big cheers and clapping. Everyone was just extremely grateful.”

Asked how he felt, colleague Eddie Hainey said: “Fantastic, absolutely fantastic. It’s a chance for a new beginning.”

Processing engineer Stuart Gordon said: “We were really, really staring into the abyss. But now we’ve got a future and remain part of the industrial landscape, instead of being on the industrial scrapheap. It’s great.

“There was a lot of relief to the point of euphoria, real relief that we now have a future. What Ineos has done by securing the ethane deal with the US and the investment in this plant is a massive deal, I don’t think that’s realised or appreciated.”

One contractor, who asked not to be named, said there was “a massive recognition that the union went too far”. He added: “We all need to work together, unionised or non-union, staff or contractors, we have to work together now and make it work. The way the Scottish and UK Governments got together was fantastic.”

The most important thing has been about telling our people that there is a future for this site and that it is long-term sustainable

Calum MacLean

Yesterday’s move followed talks staged at the plant between Ineos and the UK Government’s Scottish Secretary Alistair Carmichael alongside John Swinney, the Scottish Government’s Finance Secretary.

Unite general secretary Len McCluskey met shop stewards and managers at Grangemouth on Thursday after announcing that the union decided to “embrace” the survival plan proposed by Ineos, which said the site is losing £10million a month.

The Scottish Government has indicated it would support Ineos’s application for a £9million grant to help finance a gas terminal, while the UK Government has given “pre-qualification approval” for a £125million loan guarantee facility.

Meanwhile, BP said it had reached an agreement with Ineos which would ensure that oil and gas supplies from the Forties Pipeline System would be secured.

The pipeline – which brings oil and gas ashore from more than 50 North Sea fields – and BP’s processing plant at Kinneil depend on steam and power from Grangemouth.

Mr Ratcliffe, the majority owner of Ineos said of the union breakthrough: “This is a victory for common sense.

“Unite advised employees to reject change and vote for closure.

“Thank goodness people finally came to their senses. Grangemouth now has a great future.”

Unite’s Scottish secretary, Pat Rafferty, whose handling of the crisis has been criticised, said: “Grangemouth is the powerhouse of the Scottish economy – it now has a fighting chance of upholding this crucial role into the future.

“Obviously today’s news is tinged with sadness – decent men and women are being asked to make sacrifices to hold on to their jobs – but the clear wish of our members is to work with the company to implement its proposals.”

First Minister Alex Salmond, who was closely involved in talks and had staked his personal reputation on securing a deal, described the rescue as a “tremendous fillip for the workforce and the whole Grangemouth community, following what could have been a potential disaster”.

Mr Salmond said it had been “a great team effort from all concerned”. “There will no doubt be continued debate and recrimination in some quarters about why the future of this facility went so close to the cliff edge,” he added. “However, as First Minister, I prefer to stress the positives including the fact that so many people have gone the extra mile to secure Grangemouth’s future.”

Scottish Secretary Mr Carmichael said: “This is the news that we all wanted. The staff and their families have been through a hell of a week and I hope they have a much better weekend as a result of today’s announcement.”